Despite stringent rainfall and an expected fall in sugar production in the current marketing year starting October 2012, the Central government has confirmed that there is no proposal to ban sugar exports. About 1.35 million tonne sugar has been exported this year so far.
Earlier, the Food Ministry had planned to restrict sugar exports so as to control the rising retail prices, which had hit Rs 37-45 a kg in metros. The sugar prices started climbing up as the production lacked due to deficient rainfall in sugar cane producing states such as Maharashtra and Karnataka.
Sugar production is expected to be 26 million tonnes in the ongoing 2011-12 marketing year, and forecasts nearly 25 million tonne for the next marketing year starting October 2012. In May, the Centre had freed sugar exports and took it under the Open General License (OGL).
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